Story Protocol Plunges 50% from ATH Amid Weak Fundamentals
Story Protocol (IP) has plunged roughly 50% from its all-time high near $15 to about $7.2 following rapid profit-taking after the Origin Summit in Seoul. Despite a $2.27 billion market cap, on-chain metrics reveal weak value capture: just $29.1 million in TVL and under $700 in daily protocol revenue, while peers of similar size report millions in fees. Fundamental concerns deepened after co-founder Jason Zhao’s departure. On the charts, IP broke down from its August–September ascending wedge and 50-day SMA, testing key support at $7. A breach below could drive prices toward $6.07, $5.40 or lower levels near $4.75 and $2.40. Traders should monitor PCE data, market sentiment and on-chain trends for reversal signals.
Bearish
The 50% plunge from an ATH reflects strong profit-taking and weak fundamentals—low TVL, minimal revenue and a co-founder exit—compounded by a technical breakdown below key trendlines and moving averages. Short-term, continued selling pressure and tests of support at $7 and below suggest further downside. Long-term, absence of revenue growth and on-chain value capture raises doubts about sustainability, keeping bias bearish until clear reversal signals emerge.